New Study Shows Iowa As One of the Best States for Retirement

So, I've got a few "good" years left me, and hopefully more than just a few. Unfortunately, time waits for no man and I'd like to eventually be able to retire and enjoy my golden years, that is if our government can keep social security running. Whereas my retirement may be 25 to 30 years away, if often times seems an insurmountable task to put away "enough." In that regard, retirement has started feeling more expensive than ever, but there's actually some good news for us Iowans.

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A new study from Investopedia found that Iowa is one of the better places in the country to retire if you're hoping to make your savings last. While some states require well over $1 million in retirement savings for a couple to live comfortably, Iowa comes in well below that thanks to our lower cost of living. And, if you happen to continue working even part-time into retirement age, that nest egg could stretch even further.

According to the report, researchers looked at what the average retired couple spends each year in every state. From there, they subtracted the average Social Security benefits a couple receives and figured out how much money would need to come from retirement savings. They used the popular "4% rule," which many financial advisors use as a guideline for how much retirees can safely withdraw from their investments each year.

Then they added another wrinkle to the equation, one that could see you needing to save less. What if one spouse worked part-time during the first 10 years of their retirement? According to the research, even a little extra income can make a huge difference in your "nest egg."

Iowa by the Numbers

• Estimated retirement savings needed for an Iowa couple: about $834,000
• National average: about $1.16 million
• Earning $10,000 a year at a part-time job could reduce the amount of savings needed by at least $100,000
• Earning $20,000 a year could shave roughly $200,000 off that total
• Iowa's lower housing costs and overall cost of living helps retirees stretch their money much further

For a lot of retirees, "part-time work" doesn't mean going back to a full-time career. It could be working a few shifts a week at the local golf course, helping out at the hardware store, driving for the school district, or picking up seasonal jobs during the holidays, maybe even going back to bag some groceries at Fareway (that would be a real full circle moment for me). Besides bringing in some extra cash, it also means you're leaving more of your retirement savings invested during those critical early years.

One of the biggest reasons Iowa scores so well is pretty simple: we're just a cheaper place to live then most of the country. Housing costs play a huge role in retirement budgets, and Iowa homes are generally much more affordable than homes in places like California, New Jersey, or Hawaii. Day-to-day expenses like groceries, utilities, and transportation also tend to be lower, meaning retirees don't have to pull out as much money from their savings each month to get by.

Of course, everyone's retirement looks different. Someone who wants to spend six months a year traveling the world is going to need a bigger nest egg than someone who's happy spending weekends fishing at the lake, golfing with friends, or watching the grandkids. If your goal is simply to retire comfortably without draining your savings too quickly, Iowa continues to be one of the best places in America to make every retirement dollar go a little farther.